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In 2024–2025, the real estate market is anticipated to move toward a more steady and sustainable pace, reflecting both larger economic trends and a changing market environment. Over the previous year, Chennai has performed well as a result of the strong demand and well-timed investments from key developers. Important investments in Chennai have been announced by major real estate firms during this time frame, demonstrating their ongoing faith in the city’s real estate prospects.
Chennai Metro Phase 2
The emergence of Chennai Metro Phase 2 has created a huge impact in the real estate market. The third-longest metro system in the nation is Chennai Metro Rail. It is owned by Chennai Metro Rail Limited (CMRL), a joint venture between the federal government and the state government of Tamil Nadu. Phase-1 of the Chennai Metro Rail project that is currently functional covers a distance of 45.046 kilometres, with 2 corridors (Corridor 1 – from Washermenpet to Airport; Corridor 2 – Chennai Central to St. Thomas Mount).
The project’s second phase is scheduled to span 118.9 kilometers and have 128 stations. There will be three corridors on this route:
- Madhavaram to SIPCOT (45.8 KMS) is Corridor 3
- Lighthouse to Poonamalle Bypass, Corridor 4 (26.1 KMS)
- Madhavaram to Sholinganallur (47 KMS) is Corridor 5
Phase 2 of the Chennai Metro Rail project, which is a component of the Chennai Smart City initiative, is anticipated to be finished by 2026. The overall length of the upcoming metro will be 118.9 kms and will be built on a budget of 68,180 crores. This project is expected to be completed in 2026.
Chennai Greenfiefd Airport- Parandur
The Tamil Nadu Industrial Development Corporation (TIDCO) suggested building a new airport in the Kanchipuram district as the Chennai International Airport had reached its design capacity. The Airports Authority of India (AAI) was asked by the State government in 2021 to conduct site inspections and draft a feasibility assessment.
In July 2022, the site of the new airport was decided upon: Parandur. The government has sent out a notice to purchase 445 acres of land in order to speed up the building of Chennai’s second airport. In order to accommodate 100 million people, the Chennai Parandur Airport would be built in four stages with three terminals. An estimated Rs 32,704.92 crore would be spent on the new airport overall, with passenger terminals accounting for over 10,000 crore of that total.
Phase 1 work is expected to begin in January 2026 and be finished by December 2028, according to the reports. The subsequent stages will then be created. According to sources, the second airport in Chennai is expected to span more than 5,368 acres, including a cargo and truck docking facility that would occupy more than 2.3 lakh square meters.
Chennai-Bangalore Expressway
The Chennai-Bangalore Expressway is one of the significant projects that created a shift in the real estate demand in India. The travel time will be reduced to 2.15 hours from 5 to 6 hours. And the distance between the cities will be reduced by 80 km. The permitted speed on this expressway is 120 km/hr.
The expressway will have all the essential amenities like underpasses for vehicles, truck bays, pedestrian, and traffic administration systems. As a result of this, the property prices along this expressway will increase significantly.
The Chennai-Bangalore expressway will pass through three significant states like Andra Pradesh, Tamil Nadu, and Karnataka. Some of the prominent cities through which the highway passes are Malur, Kolar Gold Gields, Palamaner, Chittoor, Sriperumbudur, Hoskote, Bangarpet, Venkatagiriota, Bangarupalem, and Ranipet.
Chennai’s First Lite Rail Project
Chennai Metro is now working on the first light rail project in the city, which will link Tambaram and Velachery. It is anticipated that this length will be around 15 kilometers. The light rail will probably be constructed at grade (on the ground), in contrast to the 45-kilometer Metro Phase 1 project and the 9-kilometer Phase I expansion project.
The CMRL intends to investigate a number of solutions, including one that touches and incorporates East Tambaram, Medavakkam, Gowrivakkam, and Pallikaranai. The light rail is intended to pass through crowded residential neighborhoods as well as sites in the southern and outskirt parts of the city.
Chennai Mega Sports City
A budget of Rs. 700 crore would be used to build the 500-acre Chennai Mega Sports City, which will be launched on the East Coast road shortly. Built on the outskirts of the city, the facility will have all the best sports facilities, fitness centers, and athletic tracts.
Thiruvidanthai, around 30 kilometers from Chennai, is where the big sports city would be built. With the construction of this sports city, sportsmen will find it easy to practice various sports. There will reportedly be 18 distinct sporting facilities inside the facility, so there will be something for everyone.
Impacts in Real Estate Development & Growth
- The ideal period to invest in Chennai real estate is 2024–2025. Due to its consistent growth, strategic investments, and infrastructure advancements, the real estate sector is an attractive choice for both commercial and residential investments.
- Property prices in the city are expected to rise by 5–7% in 2024–2025, according to the real estate industry. The infrastructral growth and development are the major factors driving this growth.
- Owing to these developments there is a major shift in the residential preferences. People are inclined towards modern apartments and villas in Chennai with sustainable living spaces and excellent connectivity.
- It is anticipated that the emphasis on housing and infrastructure would provide job opportunities, support economic expansion, which will strengthen the real estate market.
- Some of the prominent residential localities that are set out to have exceptional demand for real estate driven by these infrastructural development are Perambur, Porur, Sholinganalllur, Anna Nagar, Medavakkam, Perungudi, and more.
Frequently Asked Questions
1. How does the infrastructural development in Chennai affect real estate?
The development of new infrastructure in Chennai will increase the real estate demand nearby, increasing the property prices. Thus, the properties around these developments will also have a better return on investment.
2. What are the booming residential real estate areas in Chennai?
Some of the booming residential real estate areas in Chennai are OMR, Poonamallee, Ambattur, Urapakkam, Thirumudivakkam, Avadi, and more. The demand for residential housing like villas and apartments in Chennai are high in these areas.
3. What are the emerging trends in real estate in Chennai driven by these infrastructural development?
The emerging trends in real estate in Chennai owing to the infrastructural development are sustainable development, shift towards modern housing options, green homes, and increased property values.